9.1HSC Topic 1: Business management & changeThe nature of managementThe importance of effective managementDefinitionsManagement - The traditional definition of management is: The process of co-ordinating a business's resources to achieve the goals of the organisation.
-The more contemporary definition of management views management as the process of working with & through people to achieve business goals in a changing environment. Efficient & effective use of resources is crucial to this.
Effectiveness - Measures the degree to which a goal has been achieved.
Efficiency - Weighs the resources needed to achieve the goal against what was actually achieved. (Cost Vs benefits)Management hierarchy-There are three levels of management, top management, middle management & supervisory management. Level of responsibility increases from supervisory to top management but the level of technical skill decreases as it goes from supervisory to top management.
Top management-Responsible for direction & success of the business's activities, & the long-term strategic plans needed to meet objectives.
-In some businesses key members of management regularly attend board meetings to outline the activities & direction of the business under their control. Although directors are not directly responsible for the day-to-day management of the business, they usually have extensive business backgrounds.
Middle management-Responsible for interpreting & carrying out policies throughout the firm, as well as the successful operation of certain divisions or departments.
-Responsible for administering the budgets, & formulating departmental policies & plans that are consistent with the firm's overall policies & plans.
-Responsible for appointing the bulk of the new employees needed by the organisation.
Supervisory management-Supervisory management forms the link between top management & the workers in an enterprise by channelling information between them.
-Supervisory managers are responsible for seeing that jobs are done properly. They are therefore chosen for both their ability to motivate their workers &...